Issue Nº. 04 | Rocket Snags Redfin
Rocket Snags Redfin: What It Means for You
Word count: 487
Estimated read time: 2 min 10 sec
________________________________________
Big news hit the real estate world this week: Rocket Mortgage scooped up Redfin for $1.75 billion. If you’re a DIY homebuyer — or just someone who likes saving money while staying in control — this shift could ripple straight to your next home purchase. So, what’s the deal, and should you care? Spoiler: Yes, you should.
Redfin started back in 2004 with a rebellious mission — slashing high commissions and shaking up the old-school real estate game. They salaried their agents to ditch the “close-at-all-costs” vibe, aiming to make buying and selling cheaper and less stressful. I loved their vibe initially! But over time, resistance from traditional brokerages and lack of profitability forced them to pivot. Today, they’re less revolution, more “just another brokerage” — and bleeding money fast. Enter Rocket Mortgage, the lending giant doing $320 billion in loans yearly, looking to grab Redfin’s popular website, data, and traffic.
Why does Rocket want this? Simple: they see Zillow’s “super app” dream — where you get your agent, lender, and title company all in one slick package — and they want in. Redfin’s the #2 spot homebuyers hit online (after Zillow), so Rocket’s betting they can catch you early, steer you to their loans, and lock down more of the market. That $1.75 billion? Economists say it’s an overpay now, but in five years, I suspect it'll look like a steal — like when Facebook snagged Instagram for a billion.
But here’s where DIY should really look closely: less competition rarely helps us. Rocket’s move could mean fewer choices and higher costs down the line. Their call-center style lending already churns out loans fast but skimps on personal touch — great for rates, lousy if your finances are quirky or you need creative solutions. Pair that with Redfin’s agents and partners nudging you toward Rocket, and consumers get a slick pipeline that might feel convenient but will almost certainly cost them in service and flexibility.
My take? Stick to your DIY guns. You don’t need Rocket’s all-in-one machine — you can build your own dream team. Hand-pick a lender, inspector, and title pro who get you. Sure, it might cost a bit more upfront than Rocket’s bundled discounts, but the value? Priceless. I’d rather pay a premium for pros who genuinely fight for me than save a buck on a system that sees me merely as a number. What are your thoughts?
Your Home-buying Friend,
– Nick
________________________________________
P.S. This Saturday, 3/15, marks one year since the Sitzner/Burnett lawsuit settled against NAR.
I spoke with NYT’s Debra Kamin this week for her piece on how the industry’s changed since.
I highlighted DIY struggles and pushed for consumer-first shifts. If you’re a subscriber, catch it in Saturday’s paper!
________________________________________
Stay Connected with DIY Homebuyer:
Join our free community: skool.com/diyhomebuyer
Subscribe to DIY Homebuyer Academy on YouTube
